The best advice that any new start up business can get is to become familiar with business liability insurance, which is also known as Commercial General Liability insurance. It is important for businesses to protect themselves against liability that they may encounter in the future. Having liability insurance can serve your small business in many ways, especially when you are a start-up business. If you do not have adequate coverage or haven't really gotten around to requesting information and quotes, it is time to give it some serious thought.
Here is some vital information you need to know about business liability insurance:
1. What exactly does liability insurance provide for?
Just like any other insurance, business liability insurance is designed to protect your business assets against allegations of negligence and may pay off obligations like medical costs for anyone who may have been injured as a result of those allegations. Likewise, there are many instances when a company may have to pay for a damages caused by your business, at your business premises or caused by your employees. In addition, this insurance also covers your legal fees in defence of those allegations of negligence. Liability insurance also covers settlements agreed to or imposed on you/your business in the case of a law suit. Overall, the insurance helps you stay prepared for unexpected circumstances.
2. How much does business liability insurance cost?
There is no standard cost for this type of insurance. Business liability insurance cost purely depends on the kind of business you have, and activities of the business. For instance, the premium for a consulting company of a few employees may be comparatively low versus a manufacturing business having a large number of machines, many employees and a large facility. Also, worker’s compensation insurance, which is mandatory in some states, may add to the cost of the liability insurance package.
3. Does your business need Liability Insurance?
The answer is yes. Accidents can happen anytime, anywhere. It is best to be prepared for such things and what better way to deal with it than insurance coverage? The insurance can cover most of your liability losses.
4. How can you save on business liability insurance?
If the cost of business liability insurance is too much for your business, there may be a way to cut your premium cost. There are business insurance discounts you can request. For instance, if you need both General Liability insurance as well as property insurance, there is a policy that will combine both types of insurance to create a type of umbrella insurance known as the Business Owner's Policy (BOP).Business liability insurance is a must for any business. It acts as a protective layer for both you and your business.
